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How Blockchain will transform the MLM Industry?

"Blockchain technology" – the revolutionary concept that changed the phase of digital industry is a game changer. And talking about the MLM industry, a marketing model that keeps the sales and network building align together to make the business a proper ‘brand’ tag. Conceptualize something with blockchain is a dream come true moment and blockchain has got such potential to transform the MLM industry.

Highlights of this article

A short note on blockchain and MLM industry

A concept or proposal from our end to transform the industry

E-commerce system in the blockchain

Why blockchain and its benefits

MLM in E-commerce – Analysis of the present system!

The present system works well with an MLM plan; you start an e-commerce business with products and vendors. The products are added up on the website, and through referral marketing, the products are sold with commissions. Referral links are provided for users, and if someone buys a product by clicking this link, the commissions will be paid. And the payment part, the admin has to approve each and every step like made the payment, shipment is done or not, dispatched status, etc.

The admin or the back-office panel has a pile of work to complete for each deal or product sale. As the supply chain depends on the MLM industry or network marketing is a part of the supply chain management, everything is interrelated and proposed model includes every stage of business. From the referral side to that of the complete payment status, blockchain keeps everything aligned.

And to make the payment status verification, a third-party API has to be used. There are such limitations to the existing model henceforth the proposed model can replace or root away all such difficulties easily. Let’s take a look at it and analyze how it transforms the industry.

Blockchain & the MLM industry!

The distributive ledger system and the revolutionary marketing model, how is these two connected together? What kind of changes can be seen in the MLM industry? How far is it going to be effective? Does it cost a great risk to bear and is it going to be a déjà vu? Here is an overwhelming sense about the transformation and the Symantec experiences that concern in the business formation.

Blockchain technology aids the business in many ways and as far as it is a concern, now it’s the validation part is carried out by the nodes. Marketing industry got its path right after the multi-level marketing ideas begin to gain the prominence. Marketing gained a good flow when the MLM model came into existence and the blockchain is going to have the same impact during this transformation too.

E-commerce in blockchain – A transforming model!

The above model conveys only certain parts of the current system. Here we'll provide you with a complete transforming model which will change the phase of the digital world. When the network is added up in the blockchain, everything is going to be easy, and transparent. The payment part can be easily validated and automatically it will be verified. Without any third-party API’s, the system itself validates with the node network.

And we've talked about the commission part if one buys a product through referral links; usually, the fiat money is used for such payments (e.g. $20 USD etc.). Instead with the blockchain services like tokens, one can provide tokens instead of normal money, and it’s a two-way opportunity. We call it the "dual proposal model of commission set-up". If tokens are provided instead then, you get the payment as well as an investment opportunity.

The value of the tokens gets hype in the future and s/he can sell it for the best. Trading, exchange, investment, etc. are always the best option to propose in the system.

If the shipping part is implemented using blockchain then, everything will be organized easily. Currently, the tracking system uses a third party application, and in times it may be a bit of distress. There are possibilities like,

Buyers lost their tracking point or a stationary hub point result.

Incorrect packing of the product.

The product gets mixed up or lost in traffic/rush.

Delays in the shipping during its passage.

Tracking number errors or any misleading facts.

Human error or malpractices in between shipping etc.

These issues cause a lot of confusion in the buyer’s mind, and loss of trust is the result of such actions. If it's open and transparent then, the system gets the maximum potential. The tracking must be open, and this part has its role in the MLM industry. E-commerce follows affiliate programs from the old times itself, and it causes a buzz in the business world. Every popular e-commerce platforms follow or inhibit such schemes alongside with normal “pick and buy” option.

With such similar MLM programs in blockchain network, the sales and marketing will boost up easily. Well, blockchain does have the impact on the marketing plans too.

MMM Plan & the blockchain – The transparency!

You obviously know How MMM Plan works – Make a donation, and earn from that donation. Well, once the system is integrated using blockchain then, the whole system will be transparent. The transparent nature makes sure of one important thing - Is the donation process completed or not?

Say, a request came up, and you made the donation but, you’re worried about various matters like the escrow value, the donation is accepted or not, whether the donation is done to the right person or not, etc. The limitations or the constraints got its solution, and the plan gets a "trust" sign. The business will also gain the required fuel to maximize its opportunities by building up an open network.

Smart contract and ICO are the next parts to discuss in this article, and it’s an important aspect to take care. As we discussed before, instead of fiat money, tokens are offered as payment. And this is done by implementing the smart contracts. Every set of compensations (bonus and commissions) needs to complete certain criteria. And to set these criterias you need to make some conditions like - you have to achieve this much sales etc. And if this is satisfied you achieve the bonus or commission. Thus dynamic compression can be implemented by means of smart contracts.

And the ICO, the old MLM crowdfunding spaces are now replaced with the ICO’s. Initial Coin offering keeps the funding part perfect, and there is no way to lock down your ideas to a massive hole anymore. ICO’s involves token as returns for the investment, and it’s the best way to deal with any marketing ideas that involves blockchain conceptualization.

So, the world is open to new transformation, and MLM has its upper hand with such latest innovations. These innovations keep your multi-level marketing business to open up a new track that will revolutionize the industry. The benefits of this system glittering and shining over the business, from now on, the business will see a new version, more compact, simple, and secure.

A touch of elegance!

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About the Author

Nikhil Ravindran

A young and talented writer who engages in the technical world and making readers aware about latest technologies.